10-QPeriod: Q1 FY2024

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2024

Filed March 5, 2024For Securities:A

Summary

Agilent Technologies, Inc. reported net revenue of $1.658 billion for the third quarter of fiscal year 2024, a decrease of 6% compared to the prior year. This decline was primarily driven by a 9% decrease in product revenue, influenced by customer capital expenditure pressures, particularly in the pharmaceutical and chemical/advanced materials markets. Despite the revenue dip, the company maintained a strong operational performance with net income of $348 million, nearly flat year-over-year. Operating cash flow significantly improved, reaching $485 million compared to $296 million in the prior year. Agilent also continued its commitment to shareholders through dividends and has a substantial remaining authorization for share repurchases. The company is navigating a challenging macroeconomic environment, especially in China, and expects ongoing customer capital expenditure pressures. However, Agilent remains optimistic about its long-term growth prospects across its key end markets, driven by its differentiated product solutions and focus on customer experience and productivity.

Financial Highlights

56 data points
Beta

Revenue

$1.66B

54.8% Gross Margin

Net Income

$348.00M

21.0% Net Margin

EPS (Diluted)

$1.18

Total Assets

$10.95B

Cash & Equivalents

$1.75B

Free Cash Flow

$395.00M

Financial Statements
Beta
Revenue$1.66B
Cost of Revenue$750.00M
Gross Profit$908.00M
R&D Expenses$128.00M
SG&A Expenses$396.00M
Operating Expenses$1.27B
Operating Income$384.00M
Interest Expense$22.00M
Net Income$348.00M
EPS (Basic)$1.19
EPS (Diluted)$1.18
Shares Outstanding (Basic)293.00M
Shares Outstanding (Diluted)294.00M

Key Highlights

  • 1Net revenue for the third quarter of fiscal year 2024 was $1.658 billion, a 6% decrease year-over-year.
  • 2Product revenue decreased by 9% year-over-year, largely due to customer capital expenditure pressures in key markets.
  • 3Net income remained strong at $348 million, a slight decrease from $352 million in the prior year.
  • 4Operating cash flow saw a significant increase, reaching $485 million compared to $296 million in the prior year.
  • 5The company's Life Sciences and Applied Markets segment experienced a 10% revenue decline, while Diagnostics and Genomics decreased by 6%.
  • 6Agilent CrossLab segment showed resilience with a 6% revenue increase year-over-year.
  • 7The company has a remaining authorization of approximately $1.524 billion for share repurchases under its 2023 repurchase program.

Frequently Asked Questions

The primary driver for the year-over-year revenue decline was a 9% decrease in product revenue. This was attributed to continued capital expenditure pressures faced by customers, particularly in the pharmaceutical and chemical/advanced materials markets.

The Life Sciences and Applied Markets segment saw a 10% decrease in revenue, and the Diagnostics and Genomics segment experienced a 6% decrease. In contrast, the Agilent CrossLab segment demonstrated growth, with revenue increasing by 6% year-over-year.

Agilent anticipates a challenging macroeconomic environment, with ongoing pressures on customer capital expenditures, especially in regions like China. The company also expects to continue facing inflationary pressures. Despite these challenges, Agilent remains optimistic about its long-term growth opportunities in its key end markets.

Agilent continues to return value to shareholders through dividends, paying $0.236 per common share in the quarter. Additionally, the company has a substantial remaining authorization of approximately $1.524 billion under its 2023 share repurchase program, indicating a commitment to reducing dilution and returning capital.